Chennai, Nov 7: Hindustan Thompson Associates (HTA) and Ogilvy & Mather (O&M) may set up an unrivalled media buying, planning and research company.This would be in line with the decision taken globally by Wire and Paper Products (WPP), which is the parent group of J Walter Thompson (HTA's parent company) and O&M Worldwide.

"The system is already operational in Europe and will be a model for development in the Asia Pacific and Atlantic regions. Right now, we are carrying out a feasibility study," HTA CEO Mike Khanna told The Financial Express.

A media outfit called MindShare set up by WPP for the group agencies is operating in some European countries.

"We are not ruling out the option of setting it up in the near future. But we have to look at the benefit to be derived by both agencies," Khanna said. A top Ogilvy & Mather official said a decision to form a media house in other countries may not automatically apply to Indian operations of the group.

Another source, on the other hand, said "the merging of media operations of the two companies took place in Singapore on November 1 and it may permeate in the rest of the region, but when and how, we don't know."

The media service company would be able to derive economies of scale in media buying. "We will be able to avail of heavy discounts with our joint buying power," an HTA source said. "The two agencies together would be looking at over Rs 1000 crore in time and space in the electronic and print media which would give us tremendous negotiation muscle."

The combined media buying power could help the agencies pass on the discount to the client and reduce overheads by being able to offer them cost-effective solutions.

The media outfit would also be able to handle multi-brand groups. HTA has annual billings of over Rs 800 crore with clients like Mahindra Ford, Hindustan Lever, Hero Honda, ITC, Welcom group, Parryware and De Beers. O&M has an annual billing of around Rs 280 crore with clients like IBM, Asian Paints, Hindustan Lever and Titan.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.